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Introduction
Promotion refers to upward movement of an employee from current job to another that is
higher in pay, responsibility and/or organizational level. Promotion brings enhanced
status, better pay, increased responsibilities and better working condition to the promotee.
Promotion is slightly different from up gradation which means elevating the place of the
job in the organizational hierarchy (a better title is given now) or including the job in
higher grade (minor enhancement in pay in tune with the limits imposed within a
particular grade).
Purpose of Promotion
i. To motivate employees to higher productivity.
ii. To attract and retain the services of qualified and competent people.
vii. To impress upon others that opportunities are available to them also in the
organisation, if they perform well.
Bases of Promotion
Organizations adopt different bases of promotion depending upon their nature, size,
management, etc. Generally, they may combine two or more bases of promotion. The
well-established bases of promotion are seniority and merit.
It motivates employees to work hard, improve their knowledge, acquire new skills
and contribute to organizational efficiency.
It helps the employer to focus attention on talented people, recognize and reward
their meritorious contributions in an appropriate way.
It also inspires other employees to improve their standards of performance through
active participation in all developmental initiatives undertaken by the employer
(training, executive development, etc.)
In spite of these merits, this system also suffers from certain limitations. They are:
The assumption that the employees learn more with length of service is not valid
as employees may learn upto a certain stage, and learning capabilities may
diminish beyond a certain age.
It demotivates the young and more competent employees and results in greater
employee turnover.
It kills the zeal and interest to develop, as everybody will be promoted without
showing any all round growth or promise.
Judging the seniority, though it seems to be easy in a theoretical sense, is highly
difficult in practice as the problems like job seniority, company seniority,
zonal/regional seniority, service in different organizations, experience as
apprentice trainee, trainee, researcher, length of service not only by days but by
hours and minutes will crop up.
TYPES OF PROMOTION
Horizontal promotion
TYPES OF
PROMOTION
Eg: a lower division clerk is promoted as an upper division clerk. This type of
promotion is referred to an “upgrading” the position of an employee.
(ii) Vertical promotion
Promotion Policy
Seniority and merit, thus, suffer from certain limitations. To be fair, therefore, a firm-
should institute a promotion policy that gives due weight age to both seniority and merit.
To strike a proper balance between the two, a firm could observe the following points:
Establish a fair and equitable basis for promotion i.e., merit or seniority or both.
A promotion policy established thus should provide equal opportunities for
promotion in all categories of jobs, departments and regions of an organization.
It should ensure an open policy in the sense that every eligible employee is
considered for promotion rather than a closed system which considers only a
particular class of employees.
The norms for judging merit, length of service, potentiality, etc., must be
established beforehand
The mode of acquiring new skills, knowledge, etc., should be specified to all
employees so that they can prepare themselves for career advancement.
Appropriate authority should be entrusted with the responsibility of talking a final
decision on promotion.
Detailed records of service, performance, etc., should be maintained for all
employees, to avoid charges of favoritism, nepotism etc.
It should be consistent in the sense that it is applied uniformly to all employees,
inspective of their background.
Promotion policy should contain alternatives to promotion when deserving
candidates are not promoted due to lack of vacancies at higher level. These
alternatives include up gradation, redesignation, sanctioning of higher pay or
increments or allowances assigning new and varied responsibilities to the
employee by enriching the job or enlarging the job.
A provision for appeal against (alleged) arbitrary actions of management and its
review should be there.
Promotion policy, once it is formulated, should be communicated to all
employees, particularly to the trade union leaders. It should be reviewed
periodically, based on experiences and findings of the attitude and morale surveys.
Transfer
Introduction
A transfer is a change in job assignment. It may involve a promotion or demotion or no
change at all in status and responsibility. A transfer has to be viewed as a change in
assignment in which an employee moves from one job to another in the same level of
hierarchy, requiring similar skills, involving approximately same level of responsibility,
same status and same level of pay. A transfer does not imply any ascending (promotion)
or descending (demotion) change in status or responsibility.
Purposes of Transfer
b. To satisfy the employee needs: Employees mat need transfers in order to satisfy
their desire to work under a friendly superior, in a department/region where
opportunities for advancement are bright, in or near their native place or place of
interest, doing a job where the work itself is challenging, etc.
e. To adjust the workforce: Workforce may be transferred from a plant where there
is less work to a plant where there is more work.
f. To provide relief: Transfers may be made to give relief to employees who are
overburdened or doing hazardous work for long periods.
Types of Transfers
Benefits Problems
Improve employee skills Inconvenient to employees who
Reduce monotony, boredom otherwise do not want to move
Remedy faulty placement decisions Employees may or may not fit in the
Prepare the employee for new location/department
challenging assignments in future Shifting of experienced hands may
Stabilize changing work affect productivity
requirements in different Discriminatory transfers may affect
departments/locations employee morale.
Improve employee satisfaction and
morale
Improve employer-employee
relations
Transfers have to be carried out in a systematic way, with a view to avoid allegations of
discrimination and favoritism. Some of the above cited problems associated with
transfers could be avoided, if organizations formulate a definite transfer policy, for use at
different points of time.
Transfer Policy
Generally, line managers administer the transfers and HR managers assist the line
managers in this respect.
SUBMITTED BY:
Ishita Mehrotra
Shefali Singhal
PGDM-II sem